GBP/USD displays downside gestures below 1.2060 as risk-off triggers ahead of US Inflation
The GBP/USD pair has faced selling pressure around 1.2080 and is likely to display more losses on dropping below the major cushion of 1.2060. On a broader note, the cable has auctioned in a 1.2063-1.2138 range for the previous two trading sessions after a modest rebound from a low near the psychological support of 1.2000. Investors are not finding optimism in the sterling as the preliminary estimate for quarterly Gross Domestic Product (GDP) displays that the economy shrunk in July. The economic data is expected to land at -0.2% vs. 0.8% in the prior release. Also, the annual data is indicating a downward shift to 2.8% against the prior release of 8.7%. Read more...
GBP/USD Forecast: Pound remains fragile despite latest recovery attempt
GBP/USD has gathered recovery momentum and climbed above 1.2100 during the European trading hours on Tuesday. The pair closes in on key resistance levels and it could find it difficult to attract buyers ahead of the US Consumer Price Index data on Wednesday. In an interview with Reuters, Bank of England (BOE) Deputy Governor Dave Ramsden said that the BOE could continue to sell gilts even if a recession forces it to start lowering the policy rate. "I think by embarking on QT, that does at the margin impart some further monetary tightening, but it's in the background compared to Bank Rate," Ramsden told Reuters. Read more...
GBP/USD fails to hold above 1.2100, erases gains
The GBP/USD is hovering slightly below 1.2100, in a quiet session. The pair peaked at 1.2130 and then pulled back to 1.2077. The US dollar is mixed as market participants await the July print of the US CPI. Quiet session on Tuesday ahead of US CPI. DXY drops modestly, remains above 106.00. GBP/USD flat for the day, holding above the 20-day SMA. Read more...
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